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Lucid. Options On $6.00 Dollar Stock With Two Days To Go Are Difficult To Trade

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...
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Netflix Pulls Off A Monday Morning Rally And Two Back To Back Friday Afternoon Rallies. That Plus My Thoughts On All Of This Action

In a recent blog I talked about Costco taking off upwards on a late Friday afternoon. This time this blog is partly about Netflix resetting itself on a Monday morning. Netflix often makes big moves on Fridays and big moves on Monday mornings. I call it getting rebalanced. Playing the Monday moves is often not as rewarding as playing the one day Friday options because included in the option pricing is a time value component. You are paying for the luxury of five days of trading time. That makes them more expensive.
Can you see a $25.00 morning bounce from it's early morning trading lows?
I call it returning to normal. One week ago I talked about Costco shooting up on a Friday afternoon starting at about 1:30 p.m. I posted a detailed blog about it's incredible jump. Here is the chart I showed before it started to jump up.
Here is how it then closed the day.
Options purchases at 1:45 p.m. which was the period of time I highlighted on the chart paid off on spades at 3:00 p.m., perhaps the best situation I witnessed on the week. My point is Monday mornings and late Friday afternoons are often sweet spots for playng options on this stock. Now yesterdays action on Friday September 19th which carries the same theme. Here is it's one day chart.
Let's image you were lucky enough to be looking at the 1210 series of Calls around 10:15 a.m. That's when this series of Calls was trading at it's lows of the day. Here is how that series of Calls then closed on the day.
The higher up "out-of-the-money" Calls posted even more impressive gains. Here are two examples.
Is it possible for anyone to pinpoint in advance when these types of moves will happen? I think people with a passion for option trading are more in tune with knowing where to look for this kind of action. Look at the upwards jump on Pfizer last week on Wednesday Sept.17th. I did a blog catching it's biggest one morning jump of the week. I showed it's Call option prices just before and just after it's big move. Go back and read that blog if you wish.
Can I teach the world to play options? Not really. I don't want to encourage others to make reckless trades. It's a sea of sharks out there. I can only show you snippets of the action. It remains a continous learning game for everyone.

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